Archives for December 2017

Putting the US defense budget in perspective …with truth and good humor!

But the question still remains: how do we fix it, and then sustainably prevent such overreach, waste, inefficiency and graft from occurring again.

A hint: it’s not going to come through anyone in government or the military industrial complex. And unfortunately, our votes are totally worthless when it comes to affecting bureaucracy.

If you think you have an open mind, and appreciate a consistent philosophy which more accurately and comprehensively explains the interrelationship of liberty, government, and the economy, then you might check out this guy: Murray N. Rothbard

Initially, his ideas may seem radical (and they are by “normal” standards), but if we think them through, and apply them to any situation around us, then ironically, greater truths are revealed that come full circle to common sense – enlightening is understatement.

The buying and selling of dollars is usually a dull piece of the world’s financial plumbing, but in the past few weeks dollar has behaved like it did during the 2008 financial crisis and the 2011 Greek default.

“This time there is no crisis—except, perhaps, one of legitimacy. Back in 2008 and 2011 there was a global shortage of dollars because banks weren’t willing to take the risk of lending, and governments and central banks had to step in to help. This month there is a shortage of dollars because governments and central banks have set arbitrary targets for bank capital, and like every bad manager in a bad company, they got what they asked for—and a lot they didn’t.” [Emphasis mine]

It is unfathomable to me that more people don’t see this regulation — of a fundamental aspect of banking — for what it is: pure socialism.

It is simply an attempt through centralized planning to “control” the banking industry, or more likely provide another barrier to competition between banks, or some other detente between all the pretty shiny people in D.C. and their counterparts in the banking industry.

I acknowledge that this may be a little caustic because I’m not sure of the particulars, but I am sure this is not competitive, not in the best interest of customers, and it is surely is not capitalism …not to be confused with crony capitalism which is more like a kissing cousin to fascism.

Many of our readers might remember the late 80s. There were hundreds of movies, songs and books about the inevitable Japanese economic invasion. The ones of you that did not live that period can see that it did not happen.

Not only are growth targets inevitably subject to gross political misrepresentation and are inherently unreliable, they misconstrue true economic value …which is purchasing power. When everyone’s purchasing power is increasing, then so is our collective wealth. This is the only standard any one needs to know. People will always need stuff, so jobs will ebb and flow with demand.

Then think about why the purchasing power of the USD is worth ~5% of what it was a little over 100 years ago – just prior to the dawn of the Federal Reserve Bank and its never-ending tendency to dilute the value of your earnings.

Its actions result in counterfeiting and all counterfeiting is theft. You may believe that since it is committed by government it is ok; that it is for the greater good; that the majority rules, etc.

But if you recognize that government is nearly always wrong, wasteful and corrupt; that people, even in government are naturally self-interested first relative to the good of society; and, that majoritarian rule is equivalent to sanctioned mob rule, then you can see that a more just society cannot exist until we relieve ourselves of these fictions and commit to the deconstruction of government and the inequitable class structure it creates.

Market-based governance founded on a single rule of law, equally applicable to all, is the most just and sustainable solution to better solving virtually every problem that affects society.

So, if you want a better economy, government will never be the answer. They are mutually exclusive.

Note: The views expressed are solely the opinion of the author.Conceptual and title source: Mises Wire Why We Should Worry About China by Daniel LacalleMedia source: Mises Wire